It is the Bank of England's job to keep inflation at or near to 2%.
Inflation has now been consistently above this target for over 2 years. With CPI at 5.2% and RPI at 5.6%, a 20-year high, surely the BoE should be doing something?
The last time RPI was at 5.6%, interest rates were 11.5%. But interest rates are set to remain low due to the "fragile economy".
However there will come a time when inflation reaches say 7% or perhaps 10%, that the BoE is forced into panic measures and when interest rates do start to rise it could be a great deal faster than they came down.
